SunTrust 2012 Annual Report Download - page 163

Notes to Consolidated Financial Statements (Continued)
147
The following table presents information on stock options by range of exercise prices at December 31, 2012:
(Dollars in millions, except per share data)
Options Outstanding Options Exercisable
Range of Exercise
Prices
Number
Outstanding
as of
December 31, 2012
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
Number
Exercisable
as of
December 31, 2012
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Aggregate
Intrinsic
Value
$9.06 to 49.46 5,065,080 $20.30 6.39 $49 2,771,191 $16.66 5.05 $39
$49.47 to 64.57 1,893,710 54.67 0.38 — 1,893,710 54.67 0.38 —
$64.58 to 150.45 6,352,862 72.60 2.28 — 6,352,862 72.60 2.28 —
13,311,652 $50.15 3.57 $49 11,017,763 $55.45 2.65 $39
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s
closing stock price on the last trading day of 2012 and the exercise price, multiplied by the number of in-the-money stock options)
that would have been received by the option holders had all option holders exercised their options on December 31, 2012. This
amount changes based on the fair market value of the Company’ s stock. Total intrinsic value of options exercised for the year
ended December 31, 2012 was $15 million and less than $1 million for the years ended December 31, 2011 and 2010. Total fair
value, measured as of the grant date, of restricted shares vested was $31 million, $55 million, and $85 million, for the years ended
December 31, 2012, 2011, and 2010, respectively.
As of December 31, 2012 and 2011, there was $67 million and $63 million, respectively, of unrecognized stock-based compensation
expense related to nonvested stock options, restricted stock, and RSUs. The unrecognized stock compensation expense as of
December 31, 2012 is expected to be recognized over a weighted average period of 2.17 years.
Stock-based compensation expense recognized in noninterest expense for the year ended December 31, was as follows:
(Dollars in millions) 2012 2011 2010
Stock-based compensation expense:
Stock options $11 $15 $14
Restricted stock 30 32 42
RSUs 27 10 —
Total stock-based compensation expense $68 $57 $56
The recognized stock-based compensation tax benefit was $26 million, $22 million, and $21 million for the years ended December
31, 2012, 2011, and 2010, respectively.
In addition to the SunTrust stock-based compensation awards, the Company has two subsidiaries which sponsor separate equity
plans where subsidiary restricted stock or restricted membership interests are granted to key employees of the subsidiaries. These
awards may be subject to one or more vesting criteria, including employment, performance or other conditions as established by
the board of directors or executive of the subsidiary at the time of grant. Compensation cost for these restricted awards is equal to
the fair market value of the shares on the grant date of the award and is amortized to compensation expense over the vesting period
considering an estimation of forfeitures. As the equity of these subsidiaries is not traded in public markets, fair market value of
the shares on the grant date is determined based on an external valuation. Depending on the specific terms of the awards, unvested
awards may or may not be entitled to receive dividends or distributions during the vesting period. The restricted stock awards and
restricted membership interest awards are subject to certain fair value put and call provisions subsequent to vesting. Stock-based
compensation expense recognized in noninterest expense for the subsidiary equity plans for the years ended December 31, 2012,
2011, and 2010 totaled $8 million, $8 million and $13 million, respectively. During 2010, the vesting of some of these awards
caused the Company to record a noncontrolling interest. During 2011, one of the subsidiaries converted all unvested membership
interest awards into LTI cash awards for a fixed dollar amount equal to the fair value of the membership interest at the date of
modification. The modified awards will continue to vest based on their original vesting schedule, and compensation expense will
be recognized based on the higher of the original grant date value or the modified value.